Southeast Asian airlines sign big aircraft purchase deals as tourists return
Bouncing back from pandemic-era losses, Southeast Asian airlines are signing big aircraft purchase deals to capture demand as tourists return to the region.
Jakarta (VNA)🐎 – Bouncing back from pandemic-era losses, Southeast Asian airlines are signing big aircraft purchase deals to capture demand as tourists return to the region.
Indonesia's state airline Garuda has planned to lease eight aircraft this year to expand its fleet to 80 aircraft and increase the frequency of flight routes by the end of this year.
According to Garuda Indonesia’s Finance Director Preasetio, the monthly rental cost for each aircraft is about 200,000 - 500,000 USD.
According to Nikkei Asia, Thai Airways has signed a contract with Boeing and some other aircraft suppliers to buy a total of 45 aircraft.
Thai Airways Chief Executive Officer (CEO) Chai Eamsiri said that the airline's plan is to increase its fleet from 70 aircraft by the end of 2023 to 96 aircraft by 2033. Meanwhile, the Thai Government has expanded the exemption of tourist visas to 93 countries from 57 nations, creating more motivation for the country's aviation industry to recover after the financial crisis from the pandemic.
Other airlines in Southeast Asia are also actively investing in capacity expansion. Philippine Airlines is tripling its investment this year to 450 million USD to upgrade and maintain its fleet. The airline also plans to order 22 new aircraft to serve North American routes and other routes.
With the recovery of air travel demand, Southeast Asian airlines are forced to find ways to regain growth.
Singapore was the first country in Southeast Asia to partially lift the foreign travel ban in September 2021. To regain market share from competitors in Europe and the Americas, which benefited from the early lifting of travel restrictions, Singapore Airlines increased flights rapidly. Its net profit for fiscal 2023 was more than 1.97 billion USD, up 24% from the previous year.
However, as these airlines have just exited from losses and heavy debts, their financial situation may not be strong enough to withstand another drastic change in the business environment.
In general, they must also consider competing to recruit higher-paid pilots after expanding their fleet, plus calculating reasonable costs to ensure cost effectiveness./.
National flag carrier Vietnam Airlines on June 25 launched a direct air route linking Hanoi with China’s Chengdu city, with a frequency of four flights a week, on Tuesdays, Wednesdays, Fridays, and Sundays.
Singapore Airlines has ordered 1,000 tonnes of sustainable aviation fuel (SAF) from refiner Neste, which is the airlines’s first purchase of low-carbon jet fuel from the Finland-based refinery.
Thailand’s airlines have scheduled to increase the number of flights to serve the travel demand during the upcoming Songkran Festival in a bid to counteract high airfare prices.
The Malaysian Aviation Group Bhd (MAG) is set to expand its fleet by introducing 12 new aircraft in 2024, including its first Airbus 330-900 (A330neo), which is scheduled to arrive in the third quarter of this year.
Malaysia, as ASEAN 2025 Chair, marked the bloc’s 58th founding anniversary on August 8 with a vibrant celebration in Cyberjaya, blending an official ceremony with a colorful cultural festival.
Vietnam plays an important role in Southeast Asia’s economic growth and is a key partner of her country in realising the shared vision of a peaceful, stable, and prosperous region, said Robyn Mudie, First Assistant Secretary of Office of Southeast Asia (OSA) – Southeast Asia Regional and Mainland Division at Australia’s Department of Foreign Affairs and Trade (DFAT).
The 2025 ASEAN Business Community Development (ABCD) Forum, themed “Empowering ASEAN's Next Leap: Digital, Sustainable & Entrepreneurial Transformation” brought together ministers, CEOs, and top industry experts to discuss key regional economic priorities.
The DES Ministry will seek cooperation from social media platforms to prevent the spread of fake news and monitor accounts related to such activities, he told reporters after chairing a meeting of the newly established Anti-Fake News Centre (AFNC).
The Joint Standing Committee on Commerce, Industry and Banking identified the US tariff reduction as a significant driver behind the improved economic outlook for Thailand.
Financial institutions and financial technology (fintech) players are intensifying their focus on expanding across the Association of Southeast Asian Nations (ASEAN), adopting tailored strategies to strengthen their presence in the region’s digital financial services landscape.
Featuring a permanent exhibition area, the ASEAN Hall will function both as a cultural showcase and as a dynamic venue for ASEAN-related events and programmes. Its inauguration on ASEAN Day added symbolic weight, marking a fresh milestone in ASEAN–RoK relations.
Thailand’s Ministry of Commerce and rice exporters are devising strategic plans to boost rice exports amid global market fluctuations, focusing on key markets and adjusting output.
The focus of the upcoming ASEAN Summit in October will be on strengthening economic relations through intra-regional trade and investment, as well as regional initiatives on energy networks and connectivity.
Indonesian Ambassador Rina P. Soemarno, who currently serves as Chair of the ASEAN Committee in Prague, emphasised the spirit of regional solidarity and cooperation, and the importance of enhancing ASEAN–Czech Republic relations.
The Indonesian Government is determined to seize opportunities to enhance the competitiveness of national agricultural products, an official has said, adding that it always strives to promote exports at the highest possible level, based on a mutually beneficial foundation.
Finance Minister Pichai Chunhavajira has outlined a six-point strategy to promote innovation, support small and medium-sized enterprises (SMEs), and push for Thailand's removal from the US Trade Representative (USTR)’s special 301 Watch List regarding intellectual property rights protection among trading partners.
Vietnamese Ambassador to Israel Ly Duc Trung emphasised ASEAN’s central role in regional mechanisms such as the ASEAN Regional Forum (ARF) and the East Asia Summit (EAS), highlighting its significant contribution to promoting peace, stability, and prosperity in Southeast Asia.
The consumer index of the University of the Thai Chamber of Commerce (UTCC), fell to 51.7 in July from 52.7 in the previous month. The sluggish economy and the trade war, as well as high living costs, continue to undermine confidence, the university said.
Deputy Speaker of the Hungarian National Assembly Istvan Jakab expressed his hope for further deepening Hungary’s ties with ASEAN countries and called for their support for Hungary’s accession to the Treaty of Amity and Cooperation in Southeast Asia.
The 30-storey tower crumbled seconds after a 7.7-magnitude earthquake hit neighbouring Myanmar on March 28. The partially built high-rise, meant to house the State Audit Office (SAO), was the only building in Thailand to collapse, killing 89 people on the site, mostly construction workers.
Indonesia’s waste generation is projected to exceed 50 million tonnes in 2025. Of the total, more than 20 million tonnes could potentially enter the ocean through rivers, coastal areas, small islands, ports, and marine activities, and thereby, pose a risk to coastal ecosystems and marine biota.
Indonesia is accelerating plans to increase lithium imports, particularly from Australia, in a bid to fill gaps in the electric vehicle (EV) battery supply chain and realise its ambition of becoming a global EV manufacturing hub.
Malaysia’s gross expenditure on R&D (GERD) reached 1.01% of gross domestic product in 2022, a notable increase, with more than 51% contributed by the industry sector. The country is targeting GERD to reach 2.5% by 2030, in line with the national goal of transforming into a high-technology nation.
